Update in Mexico’s Customs Regulations

1. Update in Mexico’s Customs Regulations WMTA Monthly Meeting June 2011

2. Third Amendment to the Mexican Customs Rules • Dated April 24, the Third Amendment to the Mexican Customs Rules was published in Mexico’s Official Gazette. The most significant updates were the following: • Possibility to rectify quantities in consolidated pedimentos • Regulations to energy drinks • Restrictions to goods imported from Japan • Modification of Incoterms

3. Rule 3.7.29 • Rule 3.7.29 was added to the Mexican Customs Rules in order to allow importers to rectify their consolidated pedimentos due to an incorrect quantification of goods. • This is an important addition to the rules, due to the fact that allows importers to rectify their pedimentos in order to decrease the quantity of their goods on temporary imports and allows exporters to increase such quantities at the return of goods abroad.

4. Rule 3.7.29 • In order to rectify such pedimentos, the importer/exporter shall close its pedimento with the error and, submit a notification to the competent finance department of SAT in order to notify that in terms of Rule 3.7.29 the pedimento will be corrected. • The importer/exporter, through its Mexican Broker, shall rectify the pedimento enclosing to such rectification a stamped copy of the notification presented to the corresponding finance department of SAT.

5. Energy Drinks • Section 7 of Appendix 10 to the Mexican Customs Rules was created in order to request exporters of energy drinks to be registered in the Specific Exporters Registry in order to export such goods.

6. Incoterms • Appendix 14 of Annex 22 was modified in order to include the following Incoterms: • DAP (Delivered at Place) • DAT (Delivered at Terminal) • This modification was to adapt the Mexican Customs Rules to the new Incoterms issued by the ICC, and enforceable as from January 1st 2011, which are actualized every 10 years.

7. Goods Arriving from Japan • Restrictions to the import of vegetable, fish and meat products arriving from Japan where applied. • Most goods listed in Chapters 1 to 23 of Customs Tariff that arrive to Mexico directly from Japan may only be imported through the ports of Manzanillo, Veracruz and Mexico City’s Airport.

8. Fourth Amendment to the Mexican Customs Rules • The fourth amendment to the Mexican Customs Rules, published May 30, 2011 established new restrictions to products arriving to Mexico directly from Japan. • Some vegetable products, chemicals, medical devices and drugs to be used in or by humans that arrive to Mexico directly from Japan may only be imported through the ports of Manzanillo, Veracruz and Mexico City’s Airport.

9. Miscellaneous Information • Last June 13, 2010, the Mexican and American Customs Ports launched a 90 day pilot program expanding the usage of FAST lines in both sides of the border to include empty trucks belonging to C-TPAT carriers. • In order to use this benefit, the driver will be required to provide an e-manifest including driver’s name, conveyance license plates, and transport company’s standard carrier alpha code (SCAC – CAAT). • This line can be used Monday to Friday from 0600 to 1200 hours.

10. General Customs Rules for 2011 • Please expect new General Customs Rules 2011 by the end of June.

11. Contact Info. • Ricardo Rebeil • Brokerage & Logistic Solutions, Inc. • rr@bls-usa.com • (619) 671-0276